Eric Margolis nails it as usual:
Obama’s total military budget is nearly $1 trillion. This includes Pentagon spending of $880 billion. Add secret black programs (about $70 billion); military aid to foreign nations like Egypt, Israel and Pakistan; 225,000 military “contractors” (mercenaries and workers); and veterans’ costs. Add $75 billion (nearly four times Canada’s total defence budget) for 16 intelligence agencies with 200,000 employees…
…The Afghanistan and Iraq wars ($1 trillion so far), will cost $200-250 billion more this year, including hidden and indirect expenses. Obama’s Afghan “surge” of 30,000 new troops will cost an additional $33 billion — more than Germany’s total defence budget.
No wonder U.S. defence stocks rose after Peace Laureate Obama’s “austerity” budget….
…Military and intelligence spending relentlessly increase as unemployment heads over 10% and the economy bleeds red ink. America has become the Sick Man of the Western Hemisphere, an economic cripple like the defunct Ottoman Empire.
The Pentagon now accounts for half of total world military spending. Add America’s rich NATO allies and Japan, and the figure reaches 75%….
…There are 750 U.S. military bases in 50 nations and 255,000 service members stationed abroad, 116,000 in Europe, nearly 100,000 in Japan and South Korea.
Military spending gobbles up 19% of federal spending and at least 44% of tax revenues. During the Bush administration, the Iraq and Afghanistan wars — funded by borrowing — cost each American family more than $25,000.
Like Bush, Obama is paying for America’s wars through supplemental authorizations — putting them on the nation’s already maxed-out credit card. Future generations will be stuck with the bill.
Margolis is right. This is how Empires die. It’s not precisely the finances that matter, but what they represent, the gutting of real economic activity and growth for activities which return no real growth or strength. To the military I would add at least three quarters of all financial activity in the US.
A sane policy would be to reduce the US military budget by a half, slash the “intelligence” budget by three quarters (they produce virtually no actionable intelligence not available through public sources), break up the banks and spend money on refitting every building in America, in making education work again, in high speed trains and so on.
But that’s not going to happen.
So yes, Margolis is right, the US is in terminal decline.
And no, it isn’t going to stop till the US crashes out.